In Equinox Gifted Thoughts v HMRC (TC00478 – 18 May) a company (E) was asked to deduct tax from one of its employees using a code with a prefix K. The company did not operate the code correctly and did not deduct sufficient tax. HMRC sought to recover the tax from E under Income Tax (PAYE) Regulations SI 2003/2682 reg 68. E made a request under reg 72A that HMRC should make a direction under reg 72(5). HMRC rejected the request and E appealed. The First-Tier Tribunal dismissed E's appeal finding on the evidence that E 'did not take reasonable care to comply with the Regulations'.
Why it matters: Employers should take care that their payroll department is capable of operating PAYE codes such as K codes which are not as straightforward as the standard code numbers. Where...
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In Equinox Gifted Thoughts v HMRC (TC00478 – 18 May) a company (E) was asked to deduct tax from one of its employees using a code with a prefix K. The company did not operate the code correctly and did not deduct sufficient tax. HMRC sought to recover the tax from E under Income Tax (PAYE) Regulations SI 2003/2682 reg 68. E made a request under reg 72A that HMRC should make a direction under reg 72(5). HMRC rejected the request and E appealed. The First-Tier Tribunal dismissed E's appeal finding on the evidence that E 'did not take reasonable care to comply with the Regulations'.
Why it matters: Employers should take care that their payroll department is capable of operating PAYE codes such as K codes which are not as straightforward as the standard code numbers. Where...
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